State Auditor To Scrutinize City Of Industry's Finances

INDUSTRY (AP) — California's bookkeeper in chief will audit the finances of the city of Industry, which according to an initial report paid about $326 million to companies owned by a former mayor and his family.

State Controller Betty Yee announced Thursday that her office will scrutinize payments made just before and after Dave Perez stepped down in 2012.

An audit by a commercial firm suggested massive overpayments to Perez, his brother and their company, saying invoices justifying the payments were vague or inflated.

Located about 20 miles east of Los Angeles, Industry has around 400 residents but, due to its business base, $140 million in annual revenue. The Perez family has owned companies with contracts to provide city services for decades.

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